Chinese partner and Agent assistance in China. UGL Corporation limited – your reliable partner
Agenting business operations with Chinese partners; how to find a reliable business partner in China for long-period cooperation; issues and problems of cooperation with Chinese business partners.
Once a company has started any business activity in China, it inevitably faces some problems in communication with its Chinese business partners. That happens due to limited English proficiency of most export managers at Chinese manufacturing companies. So, as an issue appears, there are some options of choosing an agent in China. So, what is the main role of the agent in China? Not every businessman is able to afford having a representative office in China – it is a complex and costly arrangement. Much easier to find the well-proven Agent in the market, which has a rich experience working with the Chinese, specialists who speak Chinese and understand the particular features of Chinese mentality.
Naturally, all business communication and negotiations with Chinese party are better to be held in their native language, in Chinese. The same is for any business correspondence. Ignoring this advice can lead to unpredictable and dangerous effects: starting with disagreements in price and ending with a Chinese party completely denying all agreements on the contract reached before. Those problems occur often because of misunderstanding between parties, which appears from language barrier, sometimes unseen and not evident. Of course, you can turn to the private person (Chinese person who speaks Russian or Russian freelancer), but this does not guarantee the fulfillment of all your orders and requests in time. Even if the private person is Chinese with fluent Russian language, it is impossible to be 100% sure that you will be understood correctly. The Chinese people have their own view on solving problems; they can miss something, as they did not consider it very important. The Russian freelancer can “disappear” at any time, as they are often living on sufferance in China without a work permit, mostly they are former students whose work experience is quite limited, and the level of language proficiency also leaves much to be desired.
There is one more problem – a correct document processing for exporting goods from China by your Chinese partner. Unfortunately, nearly all Chinese managers are quite careless while preparing all necessary documents, making a lot of mistakes. Those mistakes are often discovered only after the goods have crossed the border. Russian Customs, for instance, are really picky about any incorrectness in accompanying documents. At the beginning it may seem that everything is fine, with the help of the Chinese agent you have chosen factory or manufacturer and under his recommendation you have ordered the goods. But on arrival in Russia (or any other country) is detected goods shortage, re-sorting, goods of low quality or a completely different product. This, of course, can cause reciprocal claims, but Chinese side can pretend that they do not understand the problem, referring to other standards, the lack of necessary information in the contract, etc. Especially, if the goods has already been paid and had already arrived in your country, to make some changes is almost impossible. You have to go to the Court, but this will cost a great loss of time and money. In general, for contracts with the amount of 20-50 thousand USD court costs and time loss are mostly “unlifable.”
Without agent’s support, some of those issues may appear, causing direct and indirect losses and even may lead to complete loss of purchased goods (additional expenses at the customs, custom rate recalculation, confiscation of goods etc.) To avoid such situations, it is much better and more profitable to deal with an agent company, which has an office in China, highly professional staff who speak Chinese and have experience in dealing with Chinese manufacturers (customers). Some business owners in China do not speak English, but their products are of good quality and at an affordable price. The agent company which has a set of multidiscipline specialists (financiers, logistics managers, etc.), will help you to find the suppliers and manufacturers of demanding products in a short time period. If you have just decided to start your business with China, the lack of knowledge of local regulations and a language barrier are very large obstacles, for prosperous cooperation with China, choosing work with the agent in the first stage – is absolutely correct and necessary decision. UGL Corporation Ltd.- an experienced agent which has more than 10 years of experience working with various Chinese suppliers and product groups. Listed below are just some of them:
List of products shipped from China by UGL Corporation Ltd.
1. Equipment including:
1) Food (for producing foods and drinks bottling etc.).
2) Equipment for filling household chemicals
3) industrial presses of various capacities
4) Welding equipment
5) Extrusion equipment (injection molding machines)
6) Equipment for metal cutting
8) Equipment for the production of concrete products, including lightweight construction
9) Other equipment on request
2. Consumable materials for industrial fields, including:
1) Fiberglass mesh
2) Technical Paper
3) Thermal Paper
4) Graphite electrodes
5) Welding electrodes and wires for them
6) Metal Components on customers request
7) Plastic Accessories customers request
8) Chain hoists and other accessories for bridge cranes
3. Automobile theme:
1) Spare parts for Russian and Belarusian trucks
2) Spare parts for Chinese cars
3) Spare parts for Chinese trucks
4) Tires for cars, trucks, industrial use (special purpose equipment)
4. Construction materials and materials for interior design:
3) Ceramic granite
6) Glass-magnesium sheet
8) Metal doors
9) Calcium Silicate sheet
10) Spring clamp for formwork
5. Pipes and bends
6. Metal products and consumables for steel industry
2) For ceilings
3) Film for MDF facades
4) Banner fabric
5) Fabric for ceilings
1) Food (frozen vegetables, jarred food)
5) Decor (souvenirs, vases, decorative components, etc.).
7) Furniture (Glass, metal, wood) and accessories
8) Toys and other children products (except footwear and clothes)
9) Supermarket group (ceramics, hangers, graters, bed linen)
10) Energy saving Lamps (LED and CFL lamps)
Choosing a business partner in China
In order to avoid such risks, many companies which have business partners in China, are using the services of an agent in China and assign to it some service functions are necessary for effective business with the Chinese side: the translation of documents, negotiations, contract drafting, coordination of specifications and other contract terms, the correct placement of orders for the production or purchasing goods, carrying out inspections to monitor the quantity and quality of goods (packaging, equipment). The agent in China offers these services by the speaking Russian Chinese persons, as well as Chinese speaking foreign agents, living in China.
Some companies in the implementation of their activities with partners in China use the services of Chinese agents, but the trend is that many foreign companies has begun to avoid such kind of experiences. The fact is that in the process of working with the Chinese partner other problems occur: mostly the Chinese do not defend the interests of their foreign customer, receiving “kickbacks” from Chinese manufacturers or sellers who are interested in this kind of cooperation, agreeing with the Chinese agent and minimally being responsible in this case.
Very often, the Chinese agents make the same mistakes, as the same as exporters, because of a similar mentality, they listlessly negotiate, conduct commodity inspection carelessly, wrongly prepare documents and so on. The translation services from the Chinese or Chinese agents are paid less than the work of foreign agents in China, but the service quality is low.
It is useful when the company agent in China has specialists in various fields of foreign economic activity: export-import trading managers, logistics managers, financial experts, professional interpreters of commercial Chinese. Agent in China should provide a wide range of services in China: trade consulting, marketing, production outsourcing.
Our company – UGL Corporation Ltd. has all these features – many years of experience in the Chinese market gave us the confidence to take the project of any complexity. We offer a balanced solution for companies that are just beginning to deal with international activities, as well as for those who have been working with China, but looking for ways to optimize the business. We have individual approach to solving problems for each customer and do our best to ensure that our customers have used our capabilities with maximum efficiency and minimum cost.
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